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Bajaj Finance

Sometimes being late to a party might workout very well in your favor. Indian economy grew at a high rate of 9.5 percent from 2005 to 2007. Money was cheap and inflation was low. Click here to read the rest.

Jana Vembunarayanan posted: “Sometimes being late to a party might workout very well in your favor. Indian economy grew at a high rate of 9.5 percent from 2005 to 2007. Money was cheap and inflation was low. Click here to read the rest.”

As usual, enjoyed reading the blog. Helps me understand aspects of companies/industries that I may/may not have studied.

I was studying another small lending company. It is in its nascent stage and I was attempting to understand the growth factors. One question I had was as to what extent can a company borrow? Does it depend on its equity base, brand, AUM or some other risk factor? Bajaj Finance seems to have a ratio of 8 for borrowings:equity. Is that normally high for a lending company and do they need some collateral except their own loan book?